[Congressional Record (Bound Edition), Volume 150 (2004), Part 3]
[Extensions of Remarks]
[Page 2862]
[From the U.S. Government Publishing Office, www.gpo.gov]




             MINORITY HOME OWNERSHIP AND THE WOW INITIATIVE

                                 ______
                                 

                          HON. DANNY K. DAVIS

                              of illinois

                    in the house of representatives

                      Thursday, February 26, 2004

  Mr. DAVIS of Illinois. Mr. Speaker, I rise today to address the 
importance of homeownership in our country; the difficulties that many 
Americans have becoming homeowners; and the financial strain put on 
Americans, particularly minorities, when seeking reasonable housing 
options.
  Homeownership is an effective way for Americans to establish wealth 
and solidarity for their families. More should have the ability to pass 
homes from generation to generation, with the comfort and knowledge 
that home is more than a roof over one's head, but that home is a 
possession. Most consider purchasing a house a major investment, 
perhaps the largest that one will ever make, but to many it is more 
than an investment; it is the first step in achieving the American 
Dream. Families that own homes are entitled to an added sense of pride 
and a feeling of belonging to a neighborhood or community.
  We should strive for all families to have the means necessary to 
become homeowners and to live comfortably. The fact that homeownership 
is unrealistic for so many Americans is disheartening. Homeownership 
has proven to be a tremendous difficulty for a large number of 
Americans. As housing has gradually become less affordable, families 
are struggling to pay their rent, let alone mortgage. Housing is 
considered affordable when a person spends less than 30 percent of 
their income on rent or mortgage, but contrastingly 4.9 million 
Americans spend more than 50 percent of their income to remain in their 
homes. In Illinois, nearly 420,000 renting families, about 30 percent 
of the total number of renters spend more than 35 percent of their 
income on rent, 258,000 spend more than half of their salaries on rent; 
as a result many do not consider home owning an option when apartment 
living is a struggle in itself. Subsequently, of the Illinois residents 
who have been fortunate enough to purchase homes, 370,000 of them are 
spending more than the affordable rate of 30 percent, which is a 38 
percent increase from 1990 to 2000.
  Financial stress due to housing costs has become an incredible burden 
in the United States. Unfortunately the frustration shared amongst all 
Americans occurs at an increased level for minorities, particularly 
African Americans. African Americans lag behind the U.S. population 48 
percent to 68 percent in homeownership. The great wealth gap between 
African Americans and the rest of the nation creates varying levels of 
housing affordability, thus what is affordable to some is not 
affordable for others. In the Chicago metropolitan area alone, there 
are 850,000 individuals living at or near poverty. For Americans whose 
everyday reality is grim and discouraging due to lack of financial 
resources; for Americans who are overlooked despite their hard work; 
the means to live comfortably are unattainable unless a considerable 
increase in affordable housing is made.
  The Congressional Black Caucus Foundation has joined with many 
partners and sponsors including Habitat for Humanity, Fannie Mae, and 
Freddie Mac to stride towards a resolution for the homeownership gap 
where African Americans, other minorities and low-income families are 
receiving the short end of the stick. The With Ownership, Wealth 
Initiative (WOW), was created several years ago to give African 
American families an opportunity to build wealth through homeownership. 
The Initiative recognized the rates of African American poverty and 
homeownership as significantly imbalanced with those of Americans as a 
whole, and in turn set forth to begin closing the gap. WOW offers 
credit counseling, housing counseling, home buying assistance and other 
resources which help families to get on a track that will lead to 
ownership. After participating in events organized by the WOW 
Initiative, I am proud to report 200 preapproved mortgages and 103 
actual closings in the Chicago area. I commend the CBCF, WOW and its 
partners for understanding the urgent need to ensure housing 
affordability for minorities and low-income families. Further, I 
applaud their success leading families a step closer to our American 
Dream.
  Mr. Speaker, I would like to stress the need for affordable housing 
for all Americans and further I would like to emphasize the importance 
of WOW and other programs which share similar goals. These programs 
along with an end to drastic cuts in funding for housing and the 
development of more affordable homes are an absolute necessity to aid 
our country in its current housing crisis.

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